Reviewing the EU’s Crisis Management Procedures. IES Policy Brief Issue 2012/04/November 2012

Summary. The ongoing review of the EU’s Crisis Management Procedures warrants attention. What passes as an update of an arcane and technical document masks a profoundly political debate concerning what the Common Security and Defence Policy (CSDP) should be about. This policy brief summarises the main proposals and formulates a set of critical reflections. It calls for replacing the bureaucratic scheming with a more forthright political debate, and warns against sacrificing incompatible organisational cultures on the altar of the comprehensive approach. At a time when European security and prosperity trends are increasingly pointing downwards, the EEAS and the member states must look to the future and embrace, rather than resist, change.

The Role of Civil Society Dialogue in the EU-China Cooperation on Renewable Energy. IES Policy Brief Issue 2012/05/December 2012

Summary. Expanding EU-China institutional cooperation in the energy sector has been matched by a parallel process of stronger economic ties between European and Chinese companies in the renewable energy (RE) sector (particularly wind and photovoltaics). While the foundation of early EU-China institutional relations was based primarily on trade cooperation, international efforts to mitigate climate change and the common challenge of decreasing energy dependence in a sustainable manner brought a new dimension to their partnership in the energy sector in the mid 90s. Although the role of EU-China energy cooperation has grown tremendously in the context of EU external trade policy and EU strategy to boost its energy independence and international climate policy, the potential of civil society collaboration in this partnership has remained rather unexploited. Based on major civil society initiatives in the RE field that have been developed in recent years, this policy brief argues that civil society dialogue between China and EU could be an important driving force in deepening EU-China cooperation on RE and a bridge towards a more sustainable future.

EU Performance in the International Climate Negotiations in 2013: Scope for Improvement. IES Policy Brief Issue 2014/01/January 2014

Summary. The European Union (EU) has long been an important player and even a leader in the international cooperation on climate change. In 2013, preparations for a new global climate agreement in 2015 moved centre stage in the international negotiations. This policy brief assesses the EU’s performance in 2013 culminating in the Warsaw conference in November 2013. We find that the EU was actively engaged in the negotiations and pursued partially ambitious/progressive policy objectives, which it was partly successful in realising. The policy brief argues that international EU leadership for a 2015 agreement requires (1) building an international leadership alliance including the EU and other progressive countries and (2) serious homework by the EU to advance domestic climate mitigation efforts both by 2020 and 2030, and to enhance its position on climate finance.

EU climate and energy policy: hope for more and better climate policy integration? IES Policy Brief Issue 2014/02/January 2014

Summary. With discussions on-going in the EU on the climate and energy policy framework to 2030, it is timely to assess the reality of climate policy integration into EU energy policy. Such an analysis can lead to lessons for the legislative process for the 2030 package, and even for policies in other sectors and beyond 2030. Climate change is a complex, crosscutting, long-term and global problem. Policymakers acknowledge that integrating climate policy objectives into the elaboration and agreement of measures in other sectors represents one method for striving towards coherent policies that respond adequately to the climate change problem. This policy brief presents the results and policy recommendations from the project “climate policy integration into EU energy policy”.

Paris Climate Agreement 2015 – EU needs to ensure ‘signal’ and ‘direction’. IES Policy Brief Issue 2014/08/October 2014

Summary. Parties to the UN Framework Convention on Climate Change are expected to agree on a new international climate agreement applicable to all countries from 2020 at the Paris climate summit in December 2015. This Policy Brief investigates the possible role of the European Union (EU) towards the 2015 Paris climate agreement. It argues for renewed efforts by the EU at coalition building with progressive developing countries, leadership by example and a more prominent, complementary role of individual EU member states. It also argues for a Paris agreement that provides a strong “signal” and “direction”, and discusses what this may entail.

The Missing Piece: Empowerment of Roma Grassroots Organisations in EU Roma Integration Policies. IES Policy Brief Issue 2014/10/December 2014

Summary. The fourth edition of Roma Pride has brought Roma civic activism back in the spotlight. This Roma-rights mobilization, taking place every October in several European cities, has emphasized the centrality of an active civil society in pursuing a successful integration of the Roma in Europe. The ‘Award for Roma Integration’ and the ‘Civil Society Prize 2014’ conferred last October by the European Union (EU) to Roma and pro-Roma Civil Society Organizations (CSOs) have confirmed this approach. Nonetheless, a general discontent towards the EU Roma Integration Policies exists within the Roma Civil Society, who calls for stronger support to and the promotion of “Romaled change”. This Policy Brief investigates the reasons behind such discontent and identifies the ‘distance’ from Roma communities as the Achilles heel of EU policies. It argues for further efforts by the EU to empower Roma organisations operating at the grassroots through community capacity building, structured dialogue and simplification of the funding mechanisms.

Changing Banking Supervision in the Eurozone: the ECB as a Policy Entrepreneur. Bruges Political Research Paper No. 38, December 2014

In 2012, the European Union adopted a transformational change to its banking policy for the Eurozone. It dropped the model of decentralized supervision and regulatory competition between countries, and replaced it with a single supervisor and harmonization. Transferring banking supervision to the ECB also alters the existing constitutional order. The policy process leading to this transformational change was rapid and highly political, which was different compared to earlier incremental changes to banking policy. Kingdon's model, whereby policy entrepreneurs seize opportunities at times when the independent streams of solutions, problems and politics converge, partly explains this transformation. The study of EU banking policy suggests, however, that the multiple streams framework should pay more attention to the way in which entrepreneurs engineer fluctuations within the streams and thereby contribute to creating opportunities for change. This paper identifies the ECB as an effective entrepreneur which also played an active role in political bargaining.

Institutional Reform in the EU. European Policy Brief No. 19, February 2014

This Policy Brief discusses the potential reforms of the EU institutions that can take place during the 2014-2019 legislative term. It argues that negotiations on Treaty change are a possibility, but they should only start in the second part of the legislature. In the meantime, several institutional reforms that can improve the functioning of the EU – and hence increase its legitimacy – should already be considered.

Germany's European Policy: A Constructivist Perspective. CES Germany & Europe Working Papers, No. 08.1, 1998

This paper sets out a constructivist analytical framework and applies it to post-reunification German policy towards the European Union. Although the structural constraints facing Germany shifted dramatically with the end of the Cold War and reunification, the direction of its European policy did not. The more powerful Federal Republic continued to press for deeper economic and political integration, eschewing a more independent or assertive foreign policy course. Neorealism, neoliberalism, and liberalism cannot adequately explain this continuity in the face of structural change; a constructivist account centered around state identity can. During and after reunification, German leaders across the political spectrum identified the Federal Republic as part of an emergent supranational community. This European identity, with roots in the postwar decades, drove Germany's unflagging support for deeper integration across the 1989-90 divide.

Capital Markets Union: a vision for the long term. Bruegel Policy Contribution ISSUE 2015/05 April 2015

Capital Markets Union (CMU) is a welcome initiative. It could augment economic risk sharing, set the right conditions for more dynamic development of risk capital for high-growth firms and improve choices and returns for savers. This offers major potential for benefits in terms of jobs, growth and financial resilience. • CMU cannot be a short-term cyclical instrument to replace subdued bank lending, because financial ecosystems change slowly. Shifting financial intermediation towards capital markets and increasing cross-border integration will require action on multiple fronts, including increasing the transparency, reliability and comparability of information and addressing financial stability concerns. Some quick wins might be available but CMU’s real potential can only be achieved with a long-term structural policy agenda. • To sustain the current momentum, the EU should first commit to a limited number of key reforms, including more integrated accounting enforcement and supervision of audit firms. Second, it should set up autonomous taskforces to prepare proposals on the more complex issues: corporate credit information, financial infrastructure, insolvency, financial investment taxation and the retrospective review of recent capital markets regulation. The aim should be substantial legislative implementation by the end of the current EU parliamentary term.

The harsh reality of Ukraine's fiscal arithmetic. Bruegel Policy Contribution ISSUE 2015/07, June 2015

Ukraine is struggling with both external aggression and the dramatically poor shape of its economy. The pace of political and institutional change has so far been too slow to prevent the deepening of the fiscal and balance-of-payments crises, while business confidence continues to be undermined. • Unfortunately, the 2015 International Monetary Fund Extended Fund Facility programme repeats many weaknesses of the 2014 IMF Stand-by Arrangement: slow pace of fiscal adjustment especially in the two key areas of energy prices and pension entitlements, lack of a comprehensive structural and institutional reform vision, and insufficient external financing to close the expected balance-of-payments gap and allow Ukraine to return to debt sustainability in the long term. • The reform process in Ukraine must be accelerated and better managed. A frontloaded fiscal adjustment is necessary to stabilise public finances and the balance-of-payments, and to bring inflation down. The international community, especially the European Union, should offer sufficient financial aid backed by strong conditionality, technical assistance and support to Ukraine’s independence and territorial integrity.

Consensus, contradiction, and conciliation of interests: the geo-economics of the Energy Union. EPC Policy Brief, 8 July 2015

European Union energy policy calls for nothing less than a profound transformation of the EU's energy system: by 2050 decarbonised electricity generation with 80-95% fewer greenhouse gas emissions, increased use of renewables, more energy efficiency, a functioning energy market and increased security of supply are to be achieved. Different EU policies (e.g., EU climate and energy package for 2020) are intended to create the political and regulatory framework for this transformation. The sectorial dynamics resulting from these EU policies already affect the systems of electricity generation, transportation and storage in Europe, and the more effective the implementation of new measures the more the structure of Europe's power system will change in the years to come. Recent initiatives such as the 2030 climate/energy package and the Energy Union are supposed to keep this dynamic up. Setting new EU targets, however, is not necessarily the same as meeting them. The impact of EU energy policy is likely to have considerable geo-economic implications for individual member states: with increasing market integration come new competitors; coal and gas power plants face new renewable challengers domestically and abroad; and diversification towards new suppliers will result in new trade routes, entry points and infrastructure. Where these implications are at odds with powerful national interests, any member state may point to Article 194, 2 of the Lisbon Treaty and argue that the EU's energy policy agenda interferes with its given right to determine the conditions for exploiting its energy resources, the choice between different energy sources and the general structure of its energy supply. The implementation of new policy initiatives therefore involves intense negotiations to conciliate contradicting interests, something that traditionally has been far from easy to achieve. In areas where this process runs into difficulties, the transfer of sovereignty to the European level is usually to be found amongst the suggested solutions. Pooling sovereignty on a new level, however, does not automatically result in a consensus, i.e., conciliate contradicting interests. Rather than focussing on the right level of decision making, European policy makers need to face the (inconvenient truth of) geo-economical frictions within the Union that make it difficult to come to an arrangement. The reminder of this text explains these latter, more structural and sector-related challenges for European energy policy in more detail, and develops some concrete steps towards a political and regulatory framework necessary to overcome them.

How returns from tertiary education differ by field of study. Implications for policy-makers and students. CEPS Working Document No. 411/July 2015

With the huge growth in enrolment in higher education, the key question facing young people today is not so much “what to study” as “whether to study”. Taking a methodologically innovative approach, this paper measures the net present value of university education and compares returns from studying a range of different subjects. We use data from 5 European countries (France, Italy, Hungary, Poland and Slovenia) and include (opportunity) costs in the computation. Results suggest that enrolling in science, technology, engineering and mathematics (STEM) courses is often not the best investment for students, especially female students. In choosing what to study, therefore, students are taking decisions that are consistent with their own private returns. This suggests that policymakers should consider changing the incentives offered if they wish to change students’ behaviour.

Making low-carbon technology support smarter. Bruegel Policy Brief 2015/02, 18 August 2015

This Policy Brief describes the interaction between three approaches that are effective in driving innovation in low-carbon technologies. Based on that, the author provides four recommendations for making low-carbon technology support smarter. THE ISSUE Combating climate change on the global level will be much easier when abundant low-carbon technologies that are competitive in their cost and capabilities are available. But private companies underinvest in low-carbon innovation because they cannot capture the climate benefits. There are three policies to address this issue: pricing carbon, supporting deployment of as-yet uncompetitive technologies and supporting research and development.

The Political Economy of the 2014-2020 Common Agricultural Policy: An Imperfect Storm. CEPS Paperback, 17 August 2015

After five years of debates, consultations and negotiations, the European institutions reached an agreement in 2013 on the Common Agricultural Policy (CAP) for the 2014-2020 period. The outcome has major implications for the EU’s budget and farmers’ incomes but also for Europe’s environment, its contribution to global climate change and to food security in the EU and in the world. It was decided to spend more than €400 billion during the rest of the decade on the CAP.The official claims are that the new CAP will take better account of society's expectations and lead to far-reaching changes by making subsidies fairer and ‘greener’ and making the CAP more efficient. It is also asserted that the CAP will play a key part in achieving the overall objective of promoting smart, sustainable and inclusive growth. However, there is significant scepticism about these claims and disappointment with the outcome of the decision-making, the first in which the European Parliament was involved under the co-decision procedure. In contrast to earlier reforms where more substantive changes were made to the CAP, the factors that induced the policy discussions in 2008-13 and those that influenced the decision-making did not reinforce each other. On the contrary, they sometimes counteracted one another, yielding an ‘imperfect storm’ as it were, resulting in more status quo and fewer changes. This book discusses the outcome of the decision-making and the factors that influenced the policy choices and decisions. It brings together contributions from leading academics from various disciplines and policy-makers, and key participants in the process from the European Commission and the European Parliament.